Professor Elam

Sunday December 23 2012

I have stated on these pages on several occasions that I believe the Student Debt Bomb of over one trillion dollars will explode causing another financial meltdown. 

Take a look at this story about a Galveston resident amassing a $60,000 debt and still no degree.

For reasons not stated Angelica entered uber expensive Private Emory University in Atlanta. She should have gone up the Gulf Freeway to San Jacinto Community College but that is another story.  Angelica was obviously depending on assurances from Emory about her future. 

A fiduciary responsibility means according to Webster

Definition of FIDUCIARY

Was Angelica, the public in this case, depending on the value of Emory's advice in taking out these loans that this would be a workable proposition for her, it seems to me she was. Did Emory have her trust or confidence, you bet it did. and what was the result?  Emory got the money and as the country song goes, Angleica got the shaft. 

it then hit me that there is a clear parallel here. And that parallel is the cigarette manufacturers and the tobacco lawsuits. For years the manufacturers successfully claimed that smokers knew what they were getting into. But finally one plaintiff won a case, and then the dam burst and it was all over for denying responsibility. 

I suspect it is only a  matter of time before the Angelicas begin suing on a fiduciary basis, claiming that the schools were only looking out for them selves, and not the students. Once one student wins a case, the school will either have to refund the money or make good on the degree for no more money,just my guess. 

This bears watching.